Unable to collect environmental compensation fee from households, discoms tell Delhi govt

In their response to the government, the discoms said they are regulated entities operating under the Electricity Act 2003 and Delhi Electricity Regulatory Commission (DERC) is the regulatory authority that approves the parameters of billing.

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“New levy of any form has to be approved by DERC. And it is per se unsustainable therefore approval of DERC is subject to validity of such levy,” stated the discoms in their reply to the government.

The discoms told the government the NGT order was unclear on whether they should “primarily or solely” collect this tax or not.

“Compensation is not statutory levy. Electricity tax is already charged in bills as per DMC by-laws,” stated the discoms.

The major conflict is on how to count households.

“There was no agreement on the fact that households would mean consumers as told by GNCTD (Government of National Capital Territory of Delhi). If that had been the case, tribunal would have said so in its order. Households cannot be equated with consumers because one household having two or more electricity connections may be charged with double or triple environmental compensation fee by methodology,” argued one of the discoms in its response to the government.

For category A and B colonies, the environment compensation fee is Rs 500 per month, while for category C and D it is Rs 200 per month and for category E, F, G, H colonies it is Rs 100 per month.
The discoms stated any individual living in category A and B colony having one electricity meter should not be burdened with an environmental compensation charge of Rs 500 per month.

“One household of category D may be a high load user and charging that household Rs 200 will defeat the purpose of the order of the tribunal. Discoms have limited data on colony categories and corporations should be asked to collect this tax,” suggested the discoms.

Discoms suggested 100 per cent mapping of colonies was essential for effective recovery.

The Delhi government has now written to DERC to sort out the issue and direct the discoms to start collecting the compensation fee.